When we were younger, our parents taught us to make our beds in the morning. In school, our professors taught us to do our readings. Aristotle once said, “Good habits formed at youth make all the difference,” but as we grow older it seems we have less and less people guiding us to make good habits in every day life.
As stock traders, working from home can be a challenge to creating good habits. It now goes further than trying to quit biting your nails to focusing on work-life while home-life is occurring on the other side of your office door. I don’t know about you, but I find it extremely hard when my beautiful Bernese Mountain Dog, Lucy, comes up to me begging for a cookie and a cuddle.
There’s a quote that really resonates with me (especially in those times of weakness due to my dog), “Successful people are simply those with successful habits.” – Brian Tracy. I use this quote almost as an affirmation to keep me motivated and focused in order to succeed in my trading.
The following are 5 habits that every trader should incorporate into their trading habits for ultimate success.
1. Remove the following words from your vocabulary: Would have, should have, could have, and if. Lamenting over lost opportunities serves no useful purpose
2. Remove all distractions. Trading requires your full attention. Set your phone to silent or vibrate and answer your calls later. Let your family know not to bother you during such and such hours because this is ‘work-time’ not ‘family-time’. Lock your office door if you have to! Block out your balances. Let nothing interfere.
3. Stay physically, emotionally and spiritually fit. Cruising along at less than optimum performance can only cause costly errors in judgment, resulting in significant losses. If you’re not in this state, be sure to go to bed early, wake up early to get in a good run or meditate for 30 minutes. It keeps your mind clear so that you can focus on what the stock market brings that day. I have even gotten in the habit of taking a B12 vitamin every morning to help keep my mind focused and vibrant.
4. Do your homework. Know the kind of news that is scheduled and learn how your stock generally reacts to it. Make it a daily morning routine to read the newspaper on world events and how the market reacts to it. Follow up on MarketWatch.com for the latest market news.
5. Rely on your own analysis. Nobody knows for sure anything; their opinions are just that: opinions. Shut off the pundits on television. They don’t know either.
Last but not least, learn our method for effective day trading SPY.
Hugh Grossman, Head Trader at Day Trade SPY.
Hugh Grossman is the founder and Head Trader at DayTradeSPY and uses his vast experience to teach his methods to make consistent daily gains trading SPY options. Join Hugh in his interactive Trading Room to see how he regularly pulls in the profits!
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